Sale of land in midc - whether premium paid to midc allowed as cost of transfer?
aniket
(Querist) 05 March 2012
This query is : Resolved
I have a land in MIDC it was alloted to me way back in 1997, as I have not completed the 10% construction criteria, MIDC asked for a Premium of around 42lacs and has given me extended time limit to complete 10% construction. As I as unable to pay such amount o my own, I paid the amount by selling the very same land to a businessman for 42lacs only. this is because i wanted to get rid of the situation. Now will i be taxed for the consideration received or premium collected by MIDC is allowable as Cost of Transfer or Cost of Acquisition?
Please reply
Raj Kumar Makkad
(Expert) 06 March 2012
You are not liable for any tax in the given situation as receipt and expenses are same.
aniket
(Querist) 06 March 2012
is the premium collected by MIDC is penal in nature?
I mean is it treated as Penalty? if yes then I will have to pay tax i suppose.
